IAP Worldwide Services, Inc. announced it has signed a Restructuring Support Agreement ("RSA") as a result of productive discussions between the company, its current majority equity owner and representatives from each of IAP's lender groups. The RSA will allow IAP to successfully recapitalize its balance sheet, improve its liquidity, significantly reduce debt and further enhance its long-term competitive position and service offerings.
Under the terms of the RSA, IAP will reduce its debt by more than 80% and maintain a $50 million revolving credit facility, which provides additional liquidity and access to letters of credit. The RSA has been executed by IAP, its current majority equity owner and the supermajority of its first and second lien lenders. The company expects to complete the process and consummate the restructuring in the very near term.
"The agreement reached with our lenders gives IAP the long-term financial strength necessary to enhance our position as a go-to resource for our current customers while also allowing us to fully execute on our diversification strategy," said Spencer Wickham, President of IAP Worldwide. "Already we are working with customers in Afghanistan, Libya, Saudi Arabia, Kuwait and other austere regions around the globe to deliver renewable power solutions, refurbish hospitals, design and build communications and infrastructure systems and provide project management support to multiple environmental projects throughout the region, among other projects. These customers recognize our unparalleled ability to execute wherever there is a need, and we are confident that these projects are only the beginning of what we will achieve with our strengthened financial structure."
IAP is a leading international contractor providing a broad spectrum of services and solutions to commercial industries, the U.S. and multi-national government agencies and organizations. A world-class leader in providing seasoned program management, IAP leverages and integrates its capabilities to provide safe, innovative, and reliable solutions to meet customers' diverse and complex challenges. IAP's corporate headquarters is located in Cape Canaveral, Florida, and the company operates in over 120 locations worldwide.